Video News Clips: In Their Own Words

‘Powell Is Messing Up’: Charles Payne Warns Fed Could Put ‘A Real Crimp’ In Trump’s Plans For Economy

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Fox Business host Charles Payne warned Thursday that Federal Reserve Chairman Jerome Powell could hamper President-elect Donald Trump’s economic agenda with regards to China.

The Federal Reserve announced it would cut the prime interest rate by 0.25%, placing the target range to 4.25% to 4.50%, Wednesday. Payne said that while attention was focused on a stock-market downturn, the real story was how the Federal Reserve’s policies could interact with Trump’s plans.

“The real news is here how Fed policy interferes with [the] president-elect’s plans. There’s three things here that really worry me a lot. First and foremost, are these rate hikes the cure right now for inflation? Now, historically, that was the cure, but because money markets right now, money markets are giving off $350 billion. You add another 70 billion in dividends, rich people are going out spending that money,” Payne told “Fox and Friends” co-host Steve Doocy. “Last week, Restoration Hardware stock was up 17% in one day. They said we never had a better quarter, even though the housing market is the worst in 30 years. How do you put those together? Because wealthy people are living in a different world and as long as Powell keeps rates up, they will continue to spend.”

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“They keep looking at ordinary data, they’re gonna say inflation is still too high. Yeah, you are the reason,” Payne added.

Payne also warned that Trump’s efforts to address trade with China could be hampered by the Federal Reserve.

“As far as Trump is concerned, two things, the dollar surged,” Payne told Doocy. “You can’t – it’s very difficult to win a trade war with China with a dollar as high as it is right now because China will just sell stuff in America and exchange it for a lower currency. So, Powell messed up, is messing up there.”

Payne also raised concerns about interest on the national debt fueled by massive government spending.

“Also, the interest we are paying,” Payne said. “Right now our country is paying 12%, 15% on interest, so the tax money that we take in. During – right now it’s projected during Trump’s presidency that could go to over 20%. How can you save a nation, how can you grow a nation when 20% of the money you take in goes to interest payments?”

“So Powell what he’s doing right now, what happened yesterday, puts a real crimp in President Trump’s plans and it’s going to cause a lot of friction,” Payne continued.